Wednesday, June 18, 2014

ObamaCare Costs Rise Due to Subsidies. Unexpectedly!

The Los Angeles Times reports, "Obamacare subsidies push cost of health law above projections".

From the article:
The large subsidies for health insurance that helped fuel the successful drive to sign up some 8 million Americans for coverage under the Affordable Care Act may push the cost of the law considerably above current projections, a new federal report indicates.

Nearly 9 in 10 Americans who bought health coverage on the federal government’s healthcare marketplaces received government assistance to offset their premiums...

Premiums that normally would have cost $346 a month on average instead cost consumers just $82, with the federal government picking up the balance of the bill.  While the generous subsidies helped consumers, they also risk inflating the new health law’s price tag in its first year.

In other words, the expanded "coverage" has come at the cost of a massive redistribution of wealth through the tax system.  Those who had insurance previously are thus paying for many others' health insurance as well as their own.